Daily Market Highlights (07.11.11)

  • Local equity market kicked off this week on a positive note as the MSE Share Index edged minimally higher to 3,121.005 points on the back of increases in the share prices of BOV and IHI. On the other hand, HSBC, GO and MaltaPost all traded lower whilst Farsons and MIA ended the session unchanged on low volumes. Download a copy of today’s Equity Market Summary.
  • Trading activity picked up across Malta Government Stocks during this morning’s session possibly in anticipation of next week’s new stock issues. The highest volumes traded today were in the 3.75% MGS 2015 (VI) stock amounting to over €2.8 million (nominal). The Rizzo Farrugia MGS Index climbed 0.3% to a 1-month high of 992.247 points as Eurozone yields tumbled back below the 1.8% level given the prevailing uncertainties surrounding Greece and Italy. Markets are wary on the ability of Greece’s new temporary coalition government to implement the necessary changes in order to secure the required bailout package while Italy’s debt yields have now surged above the unsustainable 6.5% level.
  • Last Friday, the Treasury announced the issuance of two new Malta Government Stocks which are available for subscription by the general public. The two stocks are the 4.25% MGS 2017 (III) FI and the 5.2% MGS 2031 (I). Prices of both stocks will be determined on Thursday 10 November. Subscriptions open on Monday 14 November and close on Wednesday 16 November. Further details available here.
  • Share price of BOV partially recovered from last Friday’s 4% drop as new bids lifted the equity 0.8% higher to regain the €2.42 level across forty five trades amounting to almost 100,000 shares. Further bids outstanding at the closing price ahead of next Friday’s final dividend cut-off date. Shareholders as at close of trading next Friday will be entitled to receive the final gross dividend of €0.08 per share. Further details on the results available here.
  • Meanwhile HSBC slipped 0.7% lower to the €2.68 level across five trades totalling over 7,700 shares. Other offers unsatisfied at the last traded price whilst best bids placed at the €2.661 level.
  • Significant volumes transacted in IHI with 374,172 shares changing hands helping the share price edge 0.5% higher to regain the €0.819 level. Last Friday IHI published its Interim Statement claiming that following the end of the hostilities in the Libyan capital, the Corinthia Hotel Tripoli is now gradually returning to normal operations. IHI also reported that the other properties across Europe also reported improvements in their operating profits particularly those in Lisbon and Prague. Moreover, final works on the Corinthia Hotel in London are nearing completion ahead of its first full-year of operations in 2012.
  • Increased volumes also registered in MaltaPost ahead of the Company’s preliminary full-year results publication on 1 December. Equity closed the day 1% lower at the €0.98 level across five trades totalling almost 50,000 shares.
  • GO’s share price touched a new all-time low of €1.00 before recovering to a close of €1.069 which still represents a marginal decline from the previous close. Over 13,700 shares changed hands today with offers already placed lower at the €1.049 level.
  • MIA’s equity maintained the €1.79 level on low volumes of 550 shares. Last week the airport operator announced a further 4.4% increase in passenger movements during the month of October to 346,480 – the highest level ever reached in October. Further details on traffic statistics available here. On a different note, this afternoon, the airport operator announced that it will be refunding all landing fees during its winter schedule which spans from November 2011 to March 2012. The CEO of MIA explained that this action was taken in order to incentives all airlines to utilise the Maltese airport and thus try and maintain the growth in passenger numbers of recent years and months.